Fortress Credit Realty Income Trust Lands Up to $750M Repurchase Facility From Capital One
Only $400 million can be drawn at the outset, and both the remaining capacity and the last extension year hinge on the bank’s approval.
October 7, 2026
Fortress Credit Realty Income Trust has opened a new loan financing line with Capital One, adding up to $750 million in repurchase capacity to support its commercial real estate lending.
The trust's subsidiary, FCR CRE CONA Seller LLC, entered into a master repurchase and securities contract agreement with Capital One, National Association on September 30. The facility funds the trust's acquisition and origination of loans through the purchase, sale and repurchase of eligible mortgage loans, mezzanine loans and participation interests in mortgage loans.
Capacity Arrives in Two Stages
Not all of the $750 million is available on day one. The trust can draw $400 million at the outset, while the remaining $350 million opens up only if certain conditions are met, including Capital One's approval.
Advances accrue interest at one-month Term SOFR plus a margin the two parties set transaction by transaction. The initial availability period runs to September 30, 2027, with three one-year extension options. The seller can exercise the first two on its own, subject to customary conditions; the third requires Capital One's sign-off.
Parent Guaranty
The trust backs the facility through a separate guaranty dated the same day. Under it, the trust:
- covers losses from customary non-recourse carve-outs and customary bad-act events involving the trust or the seller;
- guarantees a negotiated percentage of outstanding advances, but only while fewer than five assets remain financed under the facility, tying that partial recourse to how concentrated the financed pool is; and
- must meet financial covenants on minimum net worth, liquidity and maximum leverage.
The guaranty can become fully recourse, up to the entire amount needed to repurchase the financed loans, if the seller or the trust becomes subject to a voluntary or collusive involuntary bankruptcy or similar insolvency proceeding.
A Growing Financing Stack
The Capital One line adds to the borrowing base the trust has been building alongside its loan book. In April, it signed a $350 million repurchase agreement with the New York branch of Banco Santander. Its fiscal 2025 annual report listed repurchase facilities with Goldman Sachs, Atlas Securitized Products and Morgan Stanley as of year-end, along with a JPMorgan revolving credit facility. And in late August, the trust moved a portion of its commercial real estate loans into term financing through a nine-class commercial real estate CLO.
